Question: Bryant Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2012. For

Bryant Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2012. For tax purposes, the company employs the completed- contract method and will continue this approach in the future. The appropriate information related to this change is as follows.

Bryant Construction Company began operations in 2011 and changed from the completed-contract

Instructions
(a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2012?
(b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?

Step by Step Solution

★★★★★

3.30 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a To determine the net income that would be reported in 2012 we need to calculate the income tax exp... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Cherokee Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2012....

harry construction changed from the completed contract to the percentage of completion method of accounting for long term construction contracts during 2015

Change in Accounting Principle Zehms Company began operations in 2008 and adopted weighted-average pricing for inventory. In 2010, in accordance with other companies in its industry. Zehms changed...

E22-13 (Change in Principle-Long-Term Contracts) Bryant Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for...

E22.6 (LO 1) (Change in Principle-Long-Term Contracts) Cullen Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of...

(L01) (Change in PrincipleLong-Term Contracts) Cullen Construction Company, which began operations in 2017, changed from the completed-contract to the percentage-of-completion method of accounting...

E 2 2 . 6 ( LO 1 ) ( Change in Principle Long - Term Contracts ) Cullen Construction Company, which began operations in 2 0 2 0 , changed from the completed - contract to the percentage - of -...

Sage Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2021....

Cullumber Construction Company, which began operations in 2017, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during...

Sheridan Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during...

Compute the (hydrostatic) force on the ends of an oil drum that is laying horizontally at the bottom of a lake that is 100m deep if the drum has circular ends that are 1m in diameter.

Giannini Inc., which produces and sells a single product, has provided the following contribution format income statement for March: Sales (5,000 units) Variable expenses Contribution margin $...

Solve for x , give your answer as a reduced fraction if necessary: - ( 1 ) / ( 4 ) x - ( 3 ) / ( 8 ) = ( 7 ) / ( 1 2 ) x + ( 5 ) / ( 4 )

As director, would you mention in a letter that Dr. Albrecht blames you for the tension in the voice department? If yes, how would you introduce and describe this issue? Would you rebuke Dr....

What is stockholders equity?

Identify the five alternatives for measuring (valuing) assets. What is the fair value of an asset? Which valuation method is usually used in a companys balance sheet?

List the major sections (and the components of each section) of a companys balance sheet.

Darleen lives in Arizona and acquired all of her property interests while living there. She owns a primary residence worth $12.2 million. She owns a condo near a Colorado ski resort worth $800,000....

If the dividends to be paid in one year on a common stock issue are $2.05 per share, the cost of equity is 18%, and the current price of the common stock is $40.91, what is the assumed growth rate?...

Miranda hires you as her CFP professional because she wants help picking the right mutual funds for her 401(k) retirement account. Miranda is age 33 with a relatively low risk tolerance. She would...